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Mohammad Ali
Mohammad Ali, Accounts & Financial Advisor
Category: Finance
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Experience:  Qualified Cost & Management Accountant, with 2 years experience in Financial & Audit Services
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Identify the segmentation criteria that will impact your target

Customer Question

Identify the segmentation criteria that will impact your target market selection. The selected organization for this assignment is Tesla Motors, a California based manufacturer, producing electrical/gasoline vehicles exceptionally designed, with high performance and efficiency.

Whom ever is prompt with a response I will definitly ACCEPT
Submitted: 7 years ago.
Category: Finance
Expert:  Mohammad Ali replied 7 years ago.


As Tesla motors produce innovative and highly efficient cars, the normal market segmentation techniques will not be of much use since they always trigger the market of conventional, generic products. The aim is not to please everyone by engaging in a mass marketing campaign; rather we have to use the target marketing strategy if we want to have an impact in the market. This would involve:

  • Differentiating the attributes of the target customers from the mass and uniquely measuring them
  • Making sure our customer segments are reachable through communication
  • Ensuring our customer segment is large enough to justify the resources being used to target them
  • To provide the segment with products that satisfies its needs.

But for all that to happen, we have to IDENTIFY the segment first, and for this purpose, we shall use two main types of techniques:

  • Psychographic segmentation,
  • Behaviorist segmentation

The two methods are explained below:

1. Psychographic segmentation

This method groups customers according to their lifestyles. Activities, Interests and Opinions (AIO) surveys will be used to measure lifestyle. Some variables that may be measured and their examples are:




Are customers happy with their daily commuting in existing cars, or do they think they deserve something better?


How interested are customers in a product that literally minimizes their traveling cost to "pennies"?


What is customer opinion on the introduction of clean, GREEN cars?


Do customers want a "clean and green" future or do they value "Bigger is better" as part of their status symbol?


Does a customer really care about economy, efficiency and effectiveness or they just "simply don't care"?

2. Behaviorist segmentation

This method is based on actual customer behavior towards the product. Some variables that may be measured and their examples are:



Benefits sought

Customers may be enticed by the extremely low operating cost of the cars, for example the $0.30 per mile cost for Tesla Cars

Usage rate

Customers may notice the cars do as good as a conventional car, doing up to 300 miles for a single recharge!

User status

First time users have to be informed of the amazing acceleration of the car (0-60mph in under 4 seconds) to generate interest

Readiness to buy

Customers have to be targeted who wish to have acceleration just like sports cars, coupled with low operating cost and environmentally friendly driving.